Air pollution and willingness to pay for health risk reductions in Egypt: A contingent valuation survey of Greater Cairo and Alexandria households

Abstract

Egypt ranks first worldwide for the number of deaths attributable to PM2.5 air pollution, yet the economic value of improved air quality and the value of reducing mortality risk due to industrial air pollution has never been evaluated using primary data for Egypt. In this paper, we fill this gap focusing on the Greater Cairo and Alexandria metropolitan areas, where more than 80 percent of the country’s industrial activities take place. We find that 73% of the 1051 surveyed households are supportive of improved air quality strategy and a reduction by 50 percent from current level of pollution is valued between 212 and 302 LE per month (13.5–19.3US$). The health risk reduction is measured with Value of Statistical Life (VSL) measures that range between 3.81 and 7.0 million LE (242,675–446,000US$). The results confirm that residents are sensitive to environmental air quality levels. Furthermore, when provided with information about the health consequences of pollution, survey respondents increased both their level of support for the policy, and their Willingness to Pay for it.